Sarvodaya Co-operative Bank: The Reserve Bank of India (RBI) on Monday imposed several restrictions on Mumbai-based Sarvodaya Co-operative Bank in view of its deteriorating financial condition. In this, a limit of Rs 15,000 has been imposed on customers for withdrawal from their accounts.
Sarvodaya Co-operative Bank: The Reserve Bank of India (RBI) on Monday imposed several restrictions on Mumbai-based Sarvodaya Co-operative Bank in view of its deteriorating financial condition. In this, a limit of Rs 15,000 has been imposed on customers for withdrawal from their accounts. Eligible depositors will be entitled to receive deposit insurance claim amount up to Rs five lakh of their deposits from the Deposit Insurance and Credit Guarantee Corporation (DICGC) only.
RBI imposed ban on the bank
The restrictions in the form of instructions under Section 35A of the Banking Regulation Act, 1949 on Sarvodaya Co-operative Bank have come into effect from the close of business on Monday (April 15, 2024). Now, Sarvodaya Sahakari Bank will not be able to give or renew any loans and advances without the prior approval of the Reserve Bank.
Further he will not be able to make any investment, incur any liability, or make any payment, whether in discharge of his liabilities and obligations.
Customers will be able to withdraw this much amount from the account
“Specifically, withdrawal of an amount not exceeding Rs 15,000 out of the total balance in all savings bank or current accounts or any other account of the depositor may not be permitted,” the central bank said.
The Reserve Bank of India (RBI) also said that the guidelines issued should not be taken as cancellation of banking license by the Reserve Bank.
